The cheapest airfares available in the Australian market have risen by around 20% over the past year, according to Feferal Government statistics. The troubles of Low Cost carrier Tiger Airways, which was grounded for a number of weeks by the Civil Aviation Safety Authority in July, appear to be a major factor. Tiger Airways has been back in the air for a while but is flying a skinny schedule, leaving a number of key routes to Virgin Australia and Qantas Group aircraft. As a result, there appears little immediate prospect of base fares heading back down.
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